<p>Most of the research on institutional dual holdings confirms its positive impact on corporate governance, investment efficiency, and firm innovation in developed countries. In contrast, this paper uncovers the flip side of dual holdings in transitional economies. Using China's context, we find that dual holdings increase stock price crash risk, supporting the transient investor hypothesis. Transmission tests indicate that this effect is more significant when investors are transient; dual holdings increase agency costs of controlling shareholders and corporate upward earning management; dual holders exert more selling pressure when the firm experiences negative returns. Heterogeneous tests show that dual holdings' impact is more obvious for firms with higher sales growth, higher managerial agency costs, or those located in lower market-level regions. We also demonstrate how dual-holding information improves practical risk monitoring and capital allocation decisions.</p>